November Letter Spurs Leadership Overhaul at CAAT Pension Plan

The CAAT Pension Plan, serving Ontario’s colleges and over 800 employers, faces significant leadership changes following a crisis that began in mid-November. The pension fund, valued at $23 billion and comprising approximately 125,000 members, has come under scrutiny due to alleged governance failures.

Leadership Crisis Triggered by Governance Concerns

The turmoil was sparked by a letter from three senior executives to the board of trustees. This correspondence flagged several governance breakdowns, primarily concerning a $1.6 million vacation payout to CEO Derek Dobson and his ongoing relationship with a CAAT staff member. The executives urged the board to investigate these issues.

Emergency Board Changes

After initially supporting Dobson, the situation became untenable, leading to the abrupt resignation of key executives on January 19. Chief Investment Officer Asif Haque, Chief Financial Officer Michael Dawson, and Chief Pension Officer Evan Howard left amid increasing internal pressure. Dobson informed staff that the executives departed “on good terms,” but reports indicated underlying tensions.

• CEO Derek Dobson’s vacation payout raised concerns about governance.
• Long-standing relationships and decision-making processes came under scrutiny.

On February 11, the CAAT board met to reassess its leadership. Subsequently, Dobson was placed on administrative leave, and Kevin Fahey, who had just been promoted to CIO, became the acting CEO.

New Leadership Appointments

Alongside Dobson’s leave, the board appointed Audrey Wubbenhorst as the new chair and Janet Greenwood as vice-chair. Their appointments came as part of efforts to restore stakeholder trust in the organization’s leadership and governance.

Regulatory Oversight and Governance Review

In the wake of these changes, the Financial Services Regulatory Authority of Ontario (FSRA) began a formal examination of CAAT. While CAAT officials stressed that governance issues do not impact the financial health of the pension plan, the scrutiny is intended to reinforce accountability within the organization.

Impact of Departures on CAAT’s Environment

The departure of senior leaders has unsettled the CAAT community, with many employees expressing dissatisfaction over the abrupt changes. The organization, often referred to affectionately as having “CAATsters,” has seen morale dip as a result of recent upheaval.

• Former board chair Don Smith was initially suspended following the crisis.
• Previous vice-chair Kareen Stangherlin resigned, citing governance concerns.

As CAAT navigates these tumultuous changes, the focus remains on restoring stability and confidence among its members and stakeholders. With an emerging leadership team, the organization faces the challenge of addressing governance queries while ensuring member interests are prioritized moving forward.